Business Environment | Case Study Report

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Business Environment

Contents
Introduction................................................................................................................................3
Brief introduction about the stakeholders..................................................................................3
Functional areas of Woolworths................................................................................................3
Internal and external stakeholders of Coles affecting due to Corona Virus..............................4
Nature and degree of main stakeholder influence......................................................................5
Level of stakeholder influence in Coles.....................................................................................5
Stakeholder matrix.....................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

Introduction
It is true that retailing supermarkets source different goods and services in order to
maintain their competitive position. At the same time, Australia has most significant
supermarket chain in the world. Due to this, retail revolution requires the supply chain
alteration. In this regard, Coles is also recognised as the most unique supply chain for
groceries and some other business and health products. Company has also given the emphasis
on changing its approach and adopting the required control and changes for making the
effective supply chain. However, its development of supply chain can be easily come to know
from its profitability.
Coles started its supermarket chain in 9 April 1914 in Victoria. It has gained huge
growth by becoming the major supermarket chain in Australia. It operates departmental and
retail stores by providing the wide variety of products such as magazines, home decors,
groceries and financial services. It is also working on different approaches for making the
better working environment for its employees. in Coles as well as every organisation.
Stakeholders are the interest of individuals that directly or indirectly affect the organisation
policies, activities and goals.
Brief introduction about the stakeholders
Stakeholders are said to be the people who have some interest and concern in the
organisation. These people affect the organisation action and get affected by their actions. In
the recent complex business environment, stakeholder’s interest is required to satisfied by the
organisation for working in sustainable manner. Retailing supermarkets are also required to
keep the regular check on their expectations. The major stakeholders are employees,
government, customers, suppliers and investors. Therefore, it is essential for organisations to
take some measures to satisfy their needs. Several big organisations are also making regular
efforts in order to maintain the positive relationship with varied stakeholders. It is because
stakeholders helps and assist the organisation in earning revenue and building its market
image. It is quite significant for the organisation to build value and ethics including integrity,
teamwork, loyalty. As compare to this, ethics are said to be the guidelines that is essential for
running business. it includes transparency, fairness as well as ethical consideration. The
business performed by Coles has direct impact on different group of stakeholders.

Engagement of stakeholder is the first priority of the organisation, due to thus Coles
maintains the healthy relationship with its entire stakeholders.
Functional areas of Woolworths
Organisation function includes set of activities that is carried in the department of
business. the main functional areas are operation, human resource, financial, as well as
marketing. Operation function of Coles helps in supporting the suppliers and customers for
reducing the wastage. it ultimately helps in driving the sustainability.
Marketing function is seen to be strength of Woolworths. It increases the awareness among
customers through newspaper, television, and magazines. There is a belief that when
customers are ware regarding product, company will be positivity affected. Human resource
function is also major function of the Woolworths. Through this, it continues to include the
competent and talented people in Woolworths. Coles also provide training to the employees
in order to perform effectively. Better customer service is also one such function area of
Woolworths by handling their customer suggestion and complaint.
Research and development: it is the most significant function area of the Australian Food
industry. Coles also undertake the enough research for creating the food products. At the
same time, it is also taking extensive research and development for getting the long-term
benefit. The current example of research and development is the trail of hybrid vans and
diesel in the New South Wales for doing home deliveries. Coles ensures the effective
research about the market in order to bring necessary changes in the organisation.
Customer service support is also one of the significant function areas of Coles as it creates the
relation between company and their clients. In Coles, customer service support ensures the
interaction with customers on complaints, inquiries, as well as order. For example: during the
corona virus situation everything is under lockdown, the customer service support team is
playing most effective role by informing the customers regarding the purchasing policies in
this time (Koehler & Raithel, 2018).

Internal and external stakeholders of Coles affecting due to Corona Virus
Suppliers: suppliers are the major stakeholder in Coles. It is found that Coles is always
concerned for its supply chain management. Due to this, Coles has also set up the supply
chain management system in effective manner for ensuring that the entire suppler centres can
effectively fulfil the requirement of retail supermarkets. Due to Corona Virus situation, Coles
supply chain is getting affected. It is because shipping timing is also getting affected due to
global health crisis. At the same time, Coles also faced delay in the refrigeration equipment.
However, it is working closely with its supplier in order to manage its response to
Coronavirus and minimising the impact of product availability for the customers. In this way,
suppliers are not able to ensure their huge delivery due to decrease in demand of customers
(Coles, 2020).
Customers: due to lockdown situation, customers are not able purchase the items. At the same
time, the sharp increase in demand is also seen. However, social media images have also
shown the empty selves as well as toilet paper shortage. In addition to this, shortage of
sanitary items and hand wash is also seen during the Corona Virus situation. Due to closure
of domestic national highways and air freight cancellation, employees are getting affected as
availability of perishable goods are too less. When the given time period will be given for
customers, they were not able to purchase the products due to huge rush in the stores. In this
way, customers are getting affected as they have only limited time to purchase any product
from the stores (Smee, 2020).
Employees: employees are the major affected stakeholder during situation of Corona Virus.
Coles is found to be in the underpayment scandal by paying too less to its employees during
this situation. In this lockdown situation, if they were not paid the enough amount, they were
not able to make enough survival. Due to the Corona virus situation, Coles has also
announced the plans for hiring around 5000 new casual employees for restocking the blank
shelves in Australia. During this situation of lockdown also, employees helped in creating the
positive working environment by handling the situation (Munir & Terry, 2018).
Government: Government has also required to change its policies due to the situation of
Corona Virus. During the situation, government has also extended the delivery hours for food
retailers as well as supermarket in order to help the industry. The new measures will ensure
the food retailers to increase the frequency of deliveries in the stores. Government decisions
also led the supermarkets to move their stock fastely from the warehouse. Government is also

working closely with the supermarkets in order to ensure the continuation in supply chain. In
this way, there is not such action left for the government rather than giving strict guidelines
(Kim, Song & Lee, 2016).
Nature and degree of main stakeholder influence
Stakeholders have their own concern and interest in the business. It is true that different
stakeholder have common conflict or interest with the company. Stakeholders in every
company also affects their action. At the same time, they also affected from the decisions of
the company. Coles also give its proper emphasis on the stakeholders so that they
significantly under the problems that is being faced by stakeholder in the environment.
Employees are the major stakeholder because they are the reason company is growing in
effective manner. It is found that Coles has experienced and capable staff in the organisation
for providing quick and best services to the customers, Coles has also adopted the soft
approach of HR to keep the employees motivated and satisfied in the organisation. At the
same time, it has also adopted the employee engagement strategies for ensuring the
employees satisfaction at workplace. Due to this, each division of Coles tends to handle the
stakeholder in most significant way by taking into account the different stakeholders group.
Suppliers also have higher influence and stake in Coles. It is because there are numerous
retailing supermarket available in Australia. Due to this, the conflict interest can be seen high
if they do not accept the suppliers demand. In spite of the well known brand, it has to face the
bargaining power from its suppliers.
In the recent time, government has the major interest, as without its permission, it cannot take
any decision to decide its working hours and availability of products. Due to the situation of
lockdown, government have the major interest and high degree of influence on its decisions.
Without the permission or any order of government, it cannot even open its store and extend
the time limit of its supermarket. In this way, it can be said that government put the major
influence on its decision-making ability. However, every stakeholder have their own
influence in the organisation by imapctinbg the decision-making at differnet steps.
Level of stakeholder influence in Coles
In Coles, the major stakeholder is supplier, customer, as well as government. Government is
seen as the major stakeholder because it directly affects the level of action in Coles. At the
same time, if it will not able to follow the rules and regulations of government, it will not be

able to sustain in the market. It is because every retailing company is required to follow the
rules. In the present time, the lockdown decision by the government has also made the Coles
to close its store for the given time period. In this situation, it is essential for Coles to follow
the instruction of Coles. At the same time, customers also affect the decision-making ability.
If demand and need of the customer will not be satisfied, it is not possible for organisations to
survive long (Decker, 2018). For example: in this changing technological environment,
customers are regularly giving emphasis on the door-to-door services. In a report, Coles has
stated that if it will fail to provide the quality product to the customers, the profit of Coles
sustainably decreases. . It is found that Coles has experienced and capable staff in the
organisation for providing quick and best services to the customers. This help in ensuring the
timely and effectively services to the customers. In this way, Stakeholders also affect the
decision making process of the company that puts the pressure on the company to fulfil the
needs as well as expectations of the company (Smith, 2012).
As compare to this, the stakeholders of Woolworths always want the best quality product.
customers significantly affected the growth of Woolworths when it was not able to satisfy
their demand. Government also put major impact on the Woolworths. Woolworths hotel
businesses has been closed until further notice come from the government. As compare to
Coles, Woolworths tend to source its goods from several direct and indirect suppliers. At the
same time, if it will not able to follow the rules and regulations of government, it will not be
able to sustain in the market. It is because every retailing company is required to follow the
rules. It also provides favourable support to its suppliers in sustainable way. For employees
also, Woolworths ensures effective wellbeing of employees through investment in learning
opportunities as well as for creating the conductive working environment. Due to this,
Woolworths has also undertaken the several measures to work effectively (Sutton-Brady,
Kamvounias & Taylor, 2015).

Stakeholder matrix
High
P
O
W
E
R
Low Interest High
Stakeholder matrix is said to be the project management tool that is used to analyse
the project stakeholder for determining the actions that are essential for aligning the goals. In
the above explained matrix, graph is divided into the four quadrants. It is essential to satisfy
the local government, as they are responsible for bringing the positive and negative changes
in the organisation. Employees and investors are required to be managed closely in the
organisation as they majorly responsible for the organisation actions. At the same time, it is
also essential to monitor the working of suppliers in order to know any deviation in their
supplying. At last, customers and employees are two most significant stakeholders who are
required to keep informed. Employees are required to be informed, as they are responsible for
bringing the required changes. Customers are required to be informed about the changing
product line, or any change in the price (Svensson et al, 2018).
Conclusion
In the limelight of above discussion, it can be concluded that stakeholders play a
significant or essential role in order to maintain the positive image of the business. However,
the major area where company is required to give emphasis includes the environmental
protection, customer satisfaction, environmental protection, good relation with the suppliers,
as well as following the government rules and regulations. Stakeholders also affect the
decision making process of the company that puts the pressure on the company to fulfil the
needs as well as expectations of the company. At the same time, Coles has also taken several
efforts and innovation in order to satisfy its different stakeholders.
Keep satisfied
Local government
It is because they bring
differnet changes in the
organsiation
Managing closely
(employees and
investors)
Monitor (suppliers)
Keep informed
(employees and
customers)

Coles has also effectively understood the stakeholder’s requirement by taking
effective actions for them. It has also undertaken the necessary efforts in order to satisfy its
stakeholders. The fulfilment of different stakeholders need has also helped it in earning more
revenue. However, it is seen that that the situation of lockdown has impacted its different
stakeholders. The major impact has been seen on the employees and customers. These
stakeholders are required to cooperate with the government decisions and actions. Therefore,
it can be stated that stakeholders are major element in bringing the positive growth in
organisation.

References
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framework for government e-procurement focusing on internal
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Coles, B. (2020). Coles facing supply chain challenges due to Coronavirus Crisis. Retrieved
from: http://mhdsupplychain.com.au/2020/02/20/coles-facing-supply-chain-
challenges-due-to-coronavirus-crisis/
Decker, C. (2018). Stakeholders' impact on turnaround performance: The case of German
savings banks. Journal of Small Business Management, 56(4), 534-554.
Eskerod, P., & Larsen, T. (2018). Advancing project stakeholder analysis by the concept
‘shadows of the context’. International Journal of Project Management, 36(1), 161-
169.
Hermans, F., Sartas, M., Van Schagen, B., van Asten, P., & Schut, M. (2017). Social network
analysis of multi-stakeholder platforms in agricultural research for development:
Opportunities and constraints for innovation and scaling. PloS one, 12(2).
Kim, J. S., Song, H. J., & Lee, C. K. (2016). Effects of corporate social responsibility and
internal marketing on organizational commitment and turnover
intentions. International Journal of Hospitality Management, 55, 25-32.
Koehler, I., & Raithel, S. (2018). Internal, external, and media stakeholders’ evaluations
during transgressions. Corporate Communications: An International Journal, 23(4),
512-527.
Munir, R., & Terry, C. (2018). Accountants and the Ethics of Profit: The Case of the
Australian Retail Industry. Journal of business ethics education, 15, 327-348.
Smee, B. (2020). Scott Morrison calls for calm as Coronavirus prompts panic buying at
supermarket. Retrieved from: https://www.theguardian.com/world/2020/mar/03/scott-
morrison-calls-for-calm-as-coronavirus-prompts-panic-buying-at-supermarkets
Smith, S. L. (2012). Toward inclusive co-management: factors influencing stakeholder
participation. Coastal Management, 40(3), 327-337.

Sutton-Brady, C., Kamvounias, P., & Taylor, T. (2015). A model of supplier–retailer power
asymmetry in the Australian retail industry. Industrial marketing management, 51,
122-130.
Svensson, G., Ferro, C., Hogevold, N., Padin, C., & Sosa Varela, J. C. (2018). Developing
theory of focal company business sustainability efforts in connection with supply
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